Cloud Computing Portfolio, Series 24
Cloud computing is defined as a technology that uses the Internet and central remote servers to maintain data and applications. This type of computing allows businesses and consumers to use applications without installation and provides access to their personal files on any device with Internet access. This technology offers more efficiency in computing by centralizing storage, memory, processing and bandwidth. In cloud computing, applications are accessible anywhere, anytime, and storage becomes, for all intents and purposes, infinite. Cloud computing acts as a global connector of the world's information and its users.
Innovation from digital device manufacturers, bandwidth providers, and content companies are among a few of the areas that are required to experience universal computing. The Cloud Computing Portfolio invests in companies that we believe will benefit as cloud computing becomes universal.
This unit investment trust seeks above-average capital appreciation; however, there is no assurance the objective will be met.
|Not FDIC Insured Not Bank Guaranteed May Lose Value
You should consider the portfolio's investment objectives, risks, and
charges and expenses carefully before investing. Contact your financial advisor
or call First Trust Portfolios, L.P. at 1.800.621.1675 to request a prospectus,
which contains this and other information about the portfolio. Read it carefully
before you invest.
An investment in this unmanaged unit investment trust should be made with an understanding of the risks involved with owning common stocks, such as an economic recession and the possible deterioration of either the financial condition of the issuers of the equity securities or the general condition of the stock market.
You should be aware that the portfolio is concentrated in stocks in the information technology sector which involves additional risks, including limited diversification. The companies engaged in the information technology sector are subject to fierce competition, high research and development costs, and their products and services may be subject to rapid obsolescence. Technology company stocks, especially those which are Internet-related, may experience extreme price and volume fluctuations that are often unrelated to their operating performance.
An investment in a portfolio containing foreign equities should be made with an understanding of the additional risks involved with foreign issuers, such as currency fluctuations, political risk, withholding, the lack of adequate financial information, and exchange control restrictions impacting foreign issuers.
An investment in a portfolio containing small-cap and mid-cap companies is subject to additional risks, as the share prices of small-cap companies and certain mid-cap companies are often more volatile than those of larger companies due to several factors, including limited trading volumes, products, financial resources, management inexperience and less publicly available information.
One of the securities in the portfolio is issued by a Real Estate Investment Trust (REIT). Companies involved in the real estate industry are subject to changes in the real estate market, vacancy rates and competition, volatile interest rates and economic recession.
This UIT is a buy and hold strategy and investors should consider their ability to hold the trust until maturity. There may be tax consequences unless units are purchased in an IRA or other qualified plan.
As the use of Internet technology has become more prevalent in the course of business, the trust has become more susceptible to potential operational risks through breaches in cyber security.
The value of the securities held by the trust may be subject to steep declines or increased volatility due to changes in performance or perception of the issuers.